Bargain buying edges up gold in Asia

Gold prices rebounded in Asian trade Wednesday after bargain buying strengthened its appeal amid euro recovery as it rose to near seven-week highs.

Gold for immediate delivery was seen trading at $1193.01 an ounce at 12.00 noon Singapore time while U.S. gold futures for August delivery was at $1,193.8 an ounce.

Meanwhile, world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings slipped to 1,316.481 tons by July 6 from 1,318.915 on July 2.

Platinum fell 0.9 per cent to $1503.15 an ounce, while palladium decreased 0.7 per cent to $434.75 an ounce. Silver for immediate delivery was little changed at $17.8275 an ounce.

The euro hovered near seven-week highs on Wednesday while the Australian dollar retained its smart gains, as investors pared long positions in the U.S. dollar on doubts about an U.S. economic recovery.

The U.S. dollar index was falling 0.60% to $84.03 while the euro was adding 0.60% to $1.26 vs. the dollar.

Bullion has dropped more than 2 percent since striking a record above $1,264 an ounce in late June, but turmoil in the financial markets could offer investors a safe haven.

On Tuesday, gold fell 1.4 per cent as global equities rallied. Gold for August delivery settled $12.60 lower to $1,195.10 an ounce at the Comex division of the New York Mercantile Exchange.

Demand for gold to make jewelry has been down in India, world's largest consumer, recently due to high prices, but recent declines in the price of the precious metal have brought more interest in physical as opposed to investment demand.